No Money Down Home Loan

No money down home loans enable those who have not been able to save for a down payment to realize the dream of home ownership. Even in an unpredictable economy, real estate is a great investment, but many feel unable to make the leap to ownership because they are unable to save enough for a deposit. There are now several no money down home loan options that can get buyers into a new house without waiting to save a deposit.

VA loans are one type that most people are familiar with. All active and retired members of the military and Coast Guard and their unmarried widows are eligible for this benefit. Some members of the Reserves and National Guard who have completed at least six years of service may also be eligible for no money down home loans. Whereas there used to be limitations which enabled an eligible person from using this benefit only once in their life, this stipulation has now been lifted. The only restrictions on VA no money down home loans are that a person may use this benefit on only one house at a time and this house must be the primary residence, not a rental or second residence.

A lesser known option is VA foreclosures. Many are unaware that a person does not have to be a veteran to purchase a VA foreclosure property with no deposit. All VA foreclosures are open to the public and many require nothing up front or a small fee of $500. A person must finance the purchase with a conventional or FHA financing unless that person is a veteran or military personnel. A person can obtain a list of VA foreclosure properties offering no money down home loan incentives from federal agencies and many lending institutions.

Another option is a seller-assisted closing or a lease-purchase option. Creating a deposit can be written into the terms of the real estate transaction. For instance, a person can offer a seller full price for their house with the stipulation that they pay the buyer $5,000 at closing to fund a deposit. Many sellers are willing to work with a no money down home loan since they would likely have reduced their asking price $5,000 anyway. With lease-purchase or rent-to-own option, a seller agrees to sell the buyer a house at a given price at a future date. Until that date, the buyer pays the seller a monthly sum and this money can be set aside as a down payment. Sellers are typically only open to this option when real estate is moving very slowly. Making such decisions requires faith in God. Luke 16:10-12 says "He that is faithful in that which is least is faithful also in much: and he that is unjust in the least is unjust also in much. If therefore ye have not been faithful in the unrighteous mammon, who will commit to your trust the true riches? And if ye have not been faithful in that which is another man's, who shall give you that which is your own?"

Also, make sure to check with the state and county for other options. Several states offer their own programs to eliminate the hurdle of a deposit. Typically, the buyer must hold a steady job with a certain minimum income and must be a first time buyer, but no money down home loan programs vary widely. With the numerous methods available to assist buyers find no money down home loans, home ownership can be a reality for just about everyone who seriously pursues it.

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